Life Insurance:

One of the most important financial decisions a person can make is buying life insurance. Irrespective of what you earn, it is impossible to predict the future. Premature death, accidents, and illnesses that the breadwinner may face can rupture the financial well-being of an entire family. This could lead to devastating consequences for the surviving family members, as they will inevitably struggle to maintain their standard of living. However, if the victim had a life insurance policy, it will cover the outstanding debts or other such financial obligations.

What is Life Insurance?

A life insurance policy is something that provides a dedicated sum of money on the demise of the policyholder or after a certain period of time.

Life insurance is a contract wherein an individual is offered financial coverage by an insurance company in exchange for a payment over a period of time. The payment made to the insurer is referred to as the premium. In case the policyholder passes away during the policy tenure, the insurance company will offer a lump sum amount to his/her nominee. This lump sum amount is called the sum assured.

A pure protection plan, such as a term insurance policy, offers only the death benefit. However, there are several types of life insurance policies that offer savings in addition to protection. The savings can be in the form of a maturity benefit or bonuses. Premiums paid and benefits received under life insurance are liable to tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Benefits of a Life Insurance Policy

Life Insurance policies offer several different benefits to individuals. Following are the most important:

Risk Cover: Since uncertainties are unpredictable and may cause problems to an individual and his / her family at any time, availing a life insurance policy will ensure that your family and dependents continue to enjoy a quality lifestyle in case of your unforeseen and accidental death.

Comprehensive Plan for Different Stages of Life: Not only does life insurance offer financial support in case of the policyholder’s unforeseen and accidental death, but also serves as a long-term investment in the sense that it encourages you to lay down your objectives, whether it is the education of your children, their marriage, constructing the home of your dreams, or even planning for a peaceful retired life. The planning will be done based on your risk appetite and life stage. Most conventional life insurance plans, such as traditional endowment plans, provide specific maturity benefits and built-in guarantees via a number of product options like Guaranteed Maturity Values, Guaranteed Cash Values, Money Back, etc.

Cover for Increasing Health Expenses: Whether it is through stand-alone insurance policies or through riders, all life insurance providers offer financial cover against hospitalisation expenses and critical illnesses. Since health expenses are increasing constantly, the need for health insurance policies has increased too, as it ensures that the policyholder will have minimal medical costs to deal with.

Promotes Savings in the Long Run: Since life insurance policies are long-term agreements wherein the policyholder is required to make a fixed periodical payment, it helps the policyholder inculcate the habit of savings. Saving money regularly over a relatively long period of time helps in building a good corpus which will in turn help in meeting your financial requirements at different stages of life.

Profitable and Secure Long-Term Investment: The insurance industry is highly regulated. The Insurance Regulatory and Development Authority of India has implemented several regulations through which the money of the policyholder is ensured to be safe with the stakeholders, which means that all the money you invest in your life insurance policy will be the responsibility of the stakeholders of the company through which you avail your policy. Since life insurance is a long-term savings product, it also ensures that the policyholder focuses on long-term returns rather than focussing on risky investment decisions that could provide short-term profits.

Guaranteed Income via Annuities: When it comes to planning for retirement, there are few instruments as effective as life insurance policies. Since you will be saving money over a period of time, life insurance policies will help in providing a steady source of income after you have retired from professional life.

Growth via Dividends: Conventional life insurance policies provide customers with an opportunity to take part in the economic growth while taking no investment risk whatsoever. While the policyholder split the investment income through yearly announcements of bonus / dividends, the policyholder will earn maturity benefits in addition to contributing to economic growth

Loan Facility: Individuals who avail life insurance policies will have the choice of availing a loan against their insurance policy, which could help them meet their unplanned life stage requirements without hampering the benefits provided by the policy they have purchased.

Redemption of Mortgage: Life insurance policies serve as the best possible tool for the coverage of loans and mortgages availed by the policyholder. If there is ever any unforeseen situation due to which the policyholder is not able to repay his / her loan or mortgage, the bereaved family members will not have the burden of repayment, and the policy can be used to repay the loan or mortgage.

Tax Benefits: Life insurance policies offer attractive tax benefits and help you save a significant amount of money which would otherwise be spent on taxes.

Life Insurance Corporation of India or LIC (as is popularly known) is the first-ever state-owned general insurance company in India to have commenced operations. Till date, LIC remains to be one of the most reputed insurance companies providing comprehensive health and life insurance policies to its customers. LIC came into origin in the year 1956 and since then it has managed to carve its own niche in the sector of insurance. LIC offers a wide range of insurance products to its customers from endowment plans, and Unit-Linked Insurance Plans, to moneyback plans and term insurance plans. Whatever insurance needs and requirements you have in life, Life Insurance Corporation of India will fulfill it easily and in a hassle-free manner.

LIC has started to offer multiple new plans which include LIC Bima Shree, LIC Jeevan Umang, and so on. A brief description of each of these plans has been given below:

LIC Bima Shree: It is essentially a non-linked, and limited premium moneyback policy that provides protection to its customers along with profits. LIC’s Bima Shree plan is essentially meant for people who have a high net worth in India and it provides financial aid to the family members of the policyholder in case of their untimely demise. In case the policyholder outlives the term of the policy, he/she is provided with regular payments at intervals throughout the tenure of the policy. Upon the policy’s maturity, a lump-sum payment also known as maturity benefit is given to the policyholder and his/her family.

What Are The Different Types of Life Insurance Policies in India?

Types of Life Insurance Policies:

Comparison of Different Types of Life Insurance:

Life insurance has evolved from a luxury to a necessity, with it becoming an integral component for the smooth functioning of our lives. While life insurance penetration in the country is yet to do justice to our numbers, each day sees hundreds of new entrants into different life insurance schemes. One of the biggest challenges pertaining to Life Insurance is related to choosing the right type of insurance, and with companies offering multiple options it wouldn’t be hard for people who are not familiar with them to get confused.

The table below will highlight and compare key aspects related to the different types of life insurance policies in India.

Parameter

Endowment Policies

Unit Linked Insurance Policies

Money Back Policies

Whole Life Policies

Pension/Annuity Policies

Term Insurance Policies

Overview

These are protection plus investment policies

These are investment plus insurance policies which are unit-linked and participatory in nature

These are protection plus saving policies which are participatory in nature

These are protection plus saving policies which are participatory in nature

These are traditional policies which are non-participatory in nature

These are the simplest life insurance policies

Term*

Term typically ranges between 10 -35 years

Term ranges between 10 – 20 years

Typically ranges between 5 to 25 years

Covers the whole life of a policyholder. Term can be as long as 40 years

Typically there are no fixed terms, with annuity kicking in post-retirement

Typically ranges from 5 years to 30 years

Death benefits

Payable to nominee on death of policyholder. Typically includes bonuses accumulated also

Payable to nominee if policyholder dies while policy is in place

Payable to nominee if policyholder dies while policy is in place. Death benefit is exclusive of other pay-outs

Payable to nominee if policyholder dies while policy is in place

Some plans offer a provision to return the invested amount in the case of death of policyholder

Sum assured is payable to the nominee if policyholder dies while the policy is in place

Maturity benefits

Maturity benefit will be paid to policyholder on survival at end of term

Maturity benefit will be paid to policyholder on survival at end of term

Survival benefit will be paid on maturity of policy

Maturity benefits are typically paid when the policyholder reaches a certain age (could range between 80 years to 100 years)

No maturity benefits per se. Policyholders are entitled to regular pension for the term specified.

No maturity benefit will be paid on survival

Premium costs

High premium costs

Premiums are on the higher side, owing to investment costs

Affordable premiums

Generally have higher premiums associated with them

Premiums are moderately priced, with most policies requiring one-time payment

Affordable premiums, lowest among all policy classes

Additional benefits

Investments accumulate profits, which are paid as bonus

Investments accumulate profits, paid as bonus. Tax exemptions can also be claimed

Regular monetary benefits are given to policyholder while the policy is in force, with these amounts not impacting the death benefit

Benefits paid on maturity or death include a bonus component along with the sum assured

Regular income source post retirement

These plans provide maximum cover at low premiums. One can opt for variants of pure term plans which provide maturity benefits

Ideal for

People with income to pay high premium and those who are looking to protect themselves and multiply their investment

People who are looking at a medium term investment goal to diversify their portfolios. Also suited to those with high income and keen investment sense

Individuals who are looking to secure their life but wish to earn some money at regular intervals. It is ideal for people looking at an investment plus protection plans

People who want to protect the interest of their family and those looking to secure the financial future of their loved ones irrespective of what happens

People who are worried about their retirement life, and those who wish to have a regular income source post retirement. Not suited for those looking at higher returns on their investment

People who are looking to secure the financial interest of their family members without having to pay exorbitant premiums. Individuals looking for short term protection can opt for these plans

*Note – The term varies from plan to plan, with the numbers mentioned above reflecting an overall average.

Life Insurance Provider Statistics:

Insurance Provider

Claims Recieved(2017-18)

Claims Paid(2017-18)

Claim Settlement Ratio (in %)

Percentage of Grievances Solved

LIC

739082

724596

98.04%

100%

SBI Life

18885

18274

96.76%

100%

ICICI Prudential

11459

11216

97.88%

99.97%

HDFC Standard

12566

12289

97.80%

99.85%

Bajaj Allianz

14315

13176

92.04%

99.48%

Max Life

10332

10152

98.26%

100%

Birla Sun Life

5491

5292

96.38%

99.75%

Kotak Mahindra

3074

2881

93.72%

99.29%

Reliance Nippon

8987

8553

95.17%

99.94%

India First

1810

1626

89.83%

98.86%

PNB MetLife

4089

3726

91.12%

98.32%

Canara HSBC

837

797

95.22%

99.70%

Tata AIA

2850

2793

98.00%

100%

DHFL Pramerica

592

572

96.62%

99.75%

Shri Ram

3146

2524

80.23%

99.75%

Star Union Daichi

1241

1145

92.26%

100%

Exide Life

3357

3250

96.81%

100%

IDBI Federal

1161

1068

91.99%

100%

Bharti Axa

888

860

96.85%

100%

Aviva

1118

1056

94.45%

100%

Future Generali

1291

1202

93.11%

100%

Edelweiss Tokio

189

180

95.24%

100%

Aegon Life

554

530

95.67%

100%

Sahara

672

556

82.74%

87.06%

Life Insurance Providers statistics for 2017-18 By IRDA

Top 10 Life Insurance Companies in India:

“Based on IRDA Annual Report 2017-18 on Total Business Premium”

When it comes to life insurance, the standard idea of the product is that if you pass away, an insurance company will pay your family a large sum of money. But that is not the only benefit that a life insurance product has to offer. A life insurance policy can also be used to plan for upcoming and unforeseen expenses through schemes like ULIPs (Unit Linked Insurance Plans) that provide returns through investment in the markets.

Following are the top 10 life insurance companies in India and the products they offer:

Proof of Income (Pension Pass Book / Income Tax Returns / Form 16 / Salary Slip)

How to Claim Life Insurance?

Life insurance claims are made under two circumstances:

Death of the life insured

Maturity of the life insurance policy

Life insurance Claims in Case of Death:

Here, nominees or close relatives of the deceased makes the claim (or assignees if the policy has been assigned) in the following way:

Inform the insurer as soon as possible with details such as time of death, place of death and cause of death.

Submit certain documents and proofs to the insurer. This will include:

The death certificate of the deceased person along with the claim form as provided by the company.

The policy in its original form as this is a legal document and proof of an insurance agreement that covered the life of the deceased.

Discharge form which has to be signed with witnesses.

If the policy was assigned, the assignee will have to provide the deed.

If a claim is made by someone other than the nominee or assignee, the person making the claim will have to submit legal proof of his/her title.

If required, post-mortem reports and hospital and attending doctor’s reports will also have to be submitted.

In cases involving police inquiries, an inquest report will have to be submitted.

While these outline the standard set of documents required to process a claim, other evidence may be required such as an employer’s certificate or any other forms or reports that will help resolve any issues thrown up during an insurer’s claim verification or investigative processes.

Rules for Beneficiaries Claiming Life Insurance:

When a policyholder’s beneficiary or nominee is claiming life insurance, he or she will be required to follow certain simple rules. The nominee will have to file a death claim in order to procure the death benefit. If you have a physical insurance policy, you can take a claim intimation or a notification form from your life insurance provider. If you have an online policy, you can apply for a form online.

Your claim intimation will need to comprise policy number, name of the policyholder, place of death, name of the insured, name of the claimant, etc.

The nominee will first have to fill a few death claim forms and also provide some proof of death. Once the form is filed with the life insurance company, then it is established that the company has got a death claim.

Next, the nominee will need to make arrangements for all the appropriate documents that serve as proofs.

Then, the nominee will need to furnish these documents to the company for the claim settlement process.

Once the forms and documents are submitted, the company will verify everything and then make a decision if it should be settled or not.

How to Save Tax with a Life Insurance Policy

Being insured in today’s date is of utmost importance. Even if your partner has a life insurance policy and a group policy from his/her company, it is important that you purchase a comprehensive life cover for yourself. Covering your life will not reduce the emotional distress that you may be going through, but a life insurance policy will ensure that you have adequate financial backup during times of your need. The insurance market is currently flooded with insurers selling a horde of insurance products and services. While selecting a particular life insurance policy, it is imperative to understand the tax implications of the same.

Section 80C of the Income Tax Act Deduction – If you are currently paying a premium towards your life insurance policy or for the life of your parents, children, or spouse, you will be eligible for a deduction under Section 80C of the Income Tax Act. Irrespective of whether your child is a minor or not, the deduction shall be applicable. However, in order to be able to claim the said deduction, the premium amount (being paid by policyholder) must not be more than 10% of the sum assured amount, in case the policy was issued after 1 April 2012.

Section 10(10D) Maturity Deduction – If the premium amount (being paid by policyholder) does not surpass 10% of the sum assured for plans that have been issued post 1 April 2012 and 20% of the sum assured for plans that have been issued before 1 April 2012, then the maturity amount that the policyholder receives at the end of the policy term will be completely exempt from tax as per Section 10(10D) of the Income Tax Act, 1961.

Life Insurance for Women in India

Women are becoming more and more empowered in all aspects in India. These days they are not only contributing to household chores but are also working shoulder to shoulder alongside men. Gone are the days where the man of the house was the sole breadwinner.

This is probably the reason why women need life insurance just as much as men in India. Women typically have the tendency of taking their financial protection for granted, hence miss out on purchasing life insurance or health insurance policies for themselves. Mentioned below are a few reasons why women should invest in life insurance policies in India:

They offer financial protection – Life insurance is essentially reliable because it offers a sense of security and protection to the policyholder and his/her family members. Moreover, when you are financially responsible for your family, no compromises should be made on protecting the same.

Life insurance policies help in savings growth – Women have always been successful with their attempts at traditional money saving, through a piggy bank, for instance. However, with the introduction of market-linked investment plans like ULIPs or endowment plans, it has now become possible to receive returns on your investment alongside coverage and protection.

Life insurance provides protection during critical illnesses – The cost of medical treatments and surgical procedures have skyrocketed, especially in the preceding years. The diagnosis of a critical illness can render the whole family helpless, in terms of finances. Moreover, if the breadwinner of the family is the sufferer, it creates an even greater financial burden on the family of the policyholder. In such a scenario, a comprehensive life insurance or health insurance policy will provide coverage and protection and thus help the family tide over the financial loss.

Life insurance policies are cost-effective – According to a study conducted recently, females outlive men and hence their life expectancy is longer. This is the reason why insurance companies see women as less risky than men and hence their premiums are highly cost-effective.

Life insurance provides the scope for retirement saving – Relying completely on the retirement investment plan of your husband might not be the most advisable thing to do. Instead, you should purchase a comprehensive life insurance policy for yourself, to help enhance the already existing retirement savings.

What are the Types of Life Insurance Policies Suitable for Women in India?

The following types of life insurance policies are most suitable for the women in India:

Term insurance plan –With the help of a term life insurance policy, you can keep all your loved ones safe and secure. Moreover, term plans come at an extremely concessional rate, and are therefore much more cost-effective than traditional life insurance policies. You should purchase a term plan early on in life as that will fetch you lower premiums.

Critical illness coverage policy – To ensure that you receive standard medical treatment in the event of occurrence of a critical illness, it is imperative that you purchase a critical illness coverage plan. This is an enhancement for your existing financial investment planning.

Endowment life insurance policy –Such plans can help you build your savings. Through endowment plans you can achieve your long-term or short-term goals.

What’s The Average Cost Of Life Insurance And What Affects The Price?

Life insurance policies are known for insuring the life of an insured and also for providing a lump sum amount to the insured’s family after the former (the insured) passes away. The insurance market is flooded with with numerous insurance policies offered by various insurance providers in today’s date. Hence, choosing a life insurance policy that best suits one’s needs has become a convenient process.

However, before investing in a life insurance policy, it is important to analyse the cost and one’s needs, and invest accordingly. Mentioned below are a few life insurance plans in India offering the best benefits.

Life Insurance Policy

Minimum and Maximum Entry Age

Minimum and Maximum Term of the Policy

Minimum and Maximum Sum Assured Amount

Aegon Life iTerm Plan

18 years as on the last birthday and 65 years as on the last birthday

Individuals can opt to invest in any policy that has a term ranging from 5 years to 62 years. A coverage for 100 years can also be opted for

Minimum sum assured is Rs.25 lakh and there is no maximum limit

Bajaj Allianz iSecure Plan

18 years as on the last birthday and 60 years as on the last birthday

The policy terms range from 10, 15, 20, 25, to 30 years

Minimum sum assured is Rs.2.5 lakh (general category) and there is no maximum limit

HDFC Life Sanchay

30 days as on the last birthday and 50 years if the term of the policy is 10 years and 45 years if the term of the policy is 15 to 25 years

The minimum policy term is 15 years and maximum ranges between 15 years and 25 years

Minimum sum assured is Rs.1.18 lakh and there is no maximum limit

SBI e-Shield Plan

18 years as on the last birthday and 60 years is the maximum entry age

If the policy is a level cover then the minimum term is 5 years and for increasing cover the term is 10 years. Maximum policy term is 30 years

Minimum sum assured is Rs.35 lakh and there is no maximum limit

Factors Affecting Life Insurance Policy Premiums

If an individual is overweight or obese, he/she will be required to pay extra premiums for his/her life insurance policy.

If an individual is part of a risky occupation like race car driving, insurance companies are typically skeptical towards such professions because of their high risk. Hence the premiums are high.

If an individual is a smoker, his/her risks are increased, and hence, he/she will be required to pay extra premiums towards the life insurance policy.

If an individual is a heavy drinker, he/she will be required to pay extra premiums.

Life Insurance for Senior Citizens in India

In India, the general tendency is to not purchase an insurance policy unless one really needs it. This is a highly risky behavior as medical emergencies and unfortunate events are unpredictable. The need to purchase a life insurance policy becomes even more integral once an individual reaches his/her retirement age.

Typically, an average young Indian avoids purchasing a life insurance policy for two reasons – firstly they feel like they might not require an insurance coverage due to their current good health, secondly, working professionals often find the insurance coverage provided by their employers to be sufficient. This ultimately results in a situation where they have zero savings during the golden years of their lives. Owing to this, a multitude of insurance companies offer health coverages or plans that are custom-made for the senior citizens of India. The enrollment age for such policies are usually up to 65 years. However, there are multiple insurers in the market that do not have the entry age restriction, thereby making it super easy for senior citizens to access standard healthcare during any point in time.

With almost every insurance company providing quality healthcare to senior citizens, it can be a daunting task to narrow down on one and purchase it. Therefore, the below-mentioned factors must be taken into consideration while purchasing a life insurance policy for senior citizens in India:

Coverage – Typically, it is advised that a higher coverage must be opted for. However, one has to keep in mind that a higher cover means a higher premium amount. There are certain insurance companies that often offer to cover more than just the basic hospitalization expenses. They, in addition to this, also offer allowance for a companion, consumable allowance, dialysis cover, domiciliary hospitalization, and so on. Multiple insurance companies also offer cover up to the amount of Rs.10 lakh.

Co-payments – Insurance policies for senior citizens often have the co-payment clause. This means that the insured individual will be required to bear a portion of the claim amount. You must search for an insurance company that offers the best deal in this regard.

Flexibility – There are certain policies that allow the policyholder to recharge the sum insured amount – up to 100% of the amount that is the original one. This will happen only in case the sum insured amount has exhausted. One should look for insurance policies that offer maximum flexibility.

Pre-existing medical conditions – If you have any pre-existing medical conditions or disorders, you must immediately inform the insurer. Any concealment of information or misinformation can result in the insurance company rejecting the claim outright.

Waiting period – Senior citizens’ insurance policies come with a certain waiting period. The waiting period usually varies from one insurance company to another. Select the one that has the least amount of time as waiting period.

Senior citizens are relatively more prone to illnesses and diseases due to their age. This is the time during which they should be worrying about taking care of their health instead of finances.

Life Insurance for NRIs: Everything you need to know

With the insurance sector maturing vastly over the last few years, people are becoming more and more aware about the importance and absolute vitality of insurance policies (both health and life). Indian citizens have rendered themselves proactive and with the constant help of financial advisors, planning in advance has become ever more easy.

Surge of NRIs in India: With an increase in the number of Non-Resident Indians
wanting to invest in Insurance policies in India, the platform has become extremely expansive. A Person of Indian Origin or PIO and a Non-Resident Indian has the full liberty to buy a life insurance policy in India to assure their lives. Multiple insurance firms and companies have now begun to re-strategise their policies to suit the needs of PIOs and NRIs.

As most of you must be aware, a term insurance plan is essentially a pure protection policy, and hence makes the most sense to be purchased for the security of an entire family. Multiple insurance companies in India have various term plans that are completely suitable to the needs of an NRI or a PIO. With the help of a questionnaire, this kind of an insurance policy can be bought in a jiffy. They are not entirely different in their structure, however individuals may customise their policies as per their needs.

However, in India, currently a handful of insurance companies have a streamlined system in place to help the NRIs with their policies. Whatever requirements are there, whether it be a medical test or simple documentation, the employees of these companies will always be at your service. Given below are few of the firms who have a systemised structure in place:

LIC or Life Insurance Corporation of India

Max Life Insurance

ICICI Prudential Life Insurance

Kotak Life Insurance

NRIs may also choose from certain insurance policies that depend wholly on the country where the person is residing currently, their age, and other valid information.

Location: If you are an NRI seeking life insurance policies in India, then you should bear in mind the fact that your geographical location will not be taken into account for doing so. However, for the medical test, you might need to visit the place of origin.

No Extra Premiums Whatsoever: If the risks involved are more or less the same, then there will be no difference in the premium rate of resident and non-resident Indians. The premium cost will be impacted if the involved risk is increased for some reason.

Digital Payment: An NRI can opt to pay digitally through a foreign nation’s remittance, or a bank account with an Non-resident ordinary (NRO) nature, and through a Non-resident (NRE)/Foreign Currency Non-Repatriable (FCNR) account.

Benefits such as death and maturity can also be deposited through the above-mentioned methods. If you are paying the premiums in a foreign currency, your proceeds will be rendered wholly repatriable. However, this will not bear any effect on the policy or the proceeds status whatsoever.

The concept of life insurance was established in India in the year 1818 by the British colonial rule. Since then, it has become a financial instrument that is crucial for every Indian citizen. The British Raj instituted Oriental Life Insurance Company to initially protect their community from medical mishaps. Much later on, the benefits of purchasing a life insurance policy were extended to Indians as well.
The first-ever life insurance company of Indian origin encompassing reasonable premiums was established in the year 1970 and it was known as Bombay Mutual Life Assurance Society.
The following milestones highlight the many achievements of the Life Insurance sector in India along with how far they have come in terms of covering innumerable lives.

Year 1818: British Raj established the first-ever life insurance business known as Oriental Life Insurance Company.

Year 1870: The first life insurance company of Indian origin commenced its business in this year and was known as the Bombay Mutual Life Assurance Society.

Year 1912: The Indian Life Assurance Companies Act was instituted as the first-ever decree in order to effectively manage the business of life insurance in India.

Year 1928: The Indian Insurance Companies Act was instituted in order to equip the Government to gather statistical information about businesses operating in the non-life as well as life insurance sector.

Year 1938: The Indian Act consolidated and amended the existing legislation to promote the insurance interests of the public.

Year 1956: Life Insurance Corporation of India or LIC was first established in this year, and life insurance as a whole was nationalised. The LIC Act, 1956 was primarily responsible for establishing the renowned life insurance company.

Year 1972: The sector of non-life insurance was nationalised in India. General Insurance Corporation of India or GIC, coupled with its subsidiaries were instituted in this year.

Year 1993: India witnessed the establishment of the Malhotra Committee.

Year 1995: India witnessed the establishment of the Mukherjee Committee.

Year 1996: A provisional committee known as Insurance Regulatory Authority was set up.

Year 1997: Life Insurance Corporation of India, General Insurance Corporation, and its subsidiaries receive considerable autonomy from the Indian Government with respect to flexibility incorporated in the norms/standards of investment, reorganising of boards.

Life insurance involves the payment of an amount of funds when the insured individual dies or once a certain period is completed. It also helps in minimising the risk by migrating it from the policyholder to the insurance provider.
Life insurance mainly focuses on risk management and risk pooling. It helps people in attaining financial security instead of being stuck when certain unforeseen and unfortunate incidents occur.
Some of the most important and common principles of life insurance include both parties (insurer and policyholder) having good faith, policyholder having insurable interest in the insurance offered by the company, the insurance company’s readiness to offer compensation when a damage or loss occurs, the principle of subrogation where the policyholder has the right to claim the amount from the insurer, etc.
Life insurance products function according to 3 aspects and they include interest earnings, mortality, and expenditures of developing and maintaining the insurance plans, etc.

With life insurance, you can provide enhanced financial security to your near and dear ones. Life insurance is an integral part of our financial planning, providing financial cover to your family members even when you are no more. Life insurance policies help you prepare for life's uncertainties; they provide complete peace of mind ensuring that the future of your loved ones is secure. Also, you can pay off various expenses incurred in different phases of your life with the help of life insurance policies. The amount received as life insurance policies can be used for paying off loan and other expenses, taking loans and fulfilling various personal needs.

Following are five main reasons as to why you need to purchase life insurance:

To meet the financial requirements of your family: In case you are the only earning member in your family, then your dependents will need a source of income to meet daily expenses in case of your untimely death. Their standard of living is likely to be affected to a significant extent if they have no source of income, making it increasingly difficult to meet expenses related to education or other necessities. By purchasing a life insurance policy, you will be ensuring that your family will be financially secure in case you are no longer in a position to provide for them.

Repayment of debt: In case you have availed a home loan or a personal loan, or have borrowed funds from a colleague or friends in order to start your own business, or if you got married recently and have a relatively young child, regardless of what the case may be, it is essential to ensure that your loved ones will have the financial resources to make any repayments on your behalf in case of your untimely death. By purchasing a life insurance policy, your spouse and dependants can repay all your debts and meet expenses in your absence, thereby ensuring that they will not have to deal with additional problems in addition to coping with your loss.

Investment and loan options: Insurance policies not only offer life cover to customers, but can also be used to repay your mortgages and loans. Loans against insurance policies are gaining an increasing amount of popularity in recent years as it is a facility that makes it easier for customers to avail financing. Moreover, life insurance policies can also be used as efficient investment instruments. Since there are so many different types of insurance policies, they can be used for different reasons. For instance, child insurance plans, retirement plans, term life insurance policies, whole life insurance policies, etc. are not only good options as life insurance policies, but are also good investment instruments with a potential to deliver good returns.

Accidents and illnesses: Since life is uncertain and accidents and illnesses can occur at any time and leave you in a position where you cannot earn income for your family, life insurance policies work as a great solution in dealing with this issue. In case you meet with a serious accident that renders you disabled, or an illness that could see you incur significant expenses, you can always count on your insurance policy to not only avail treatment from some of the most effective medical institutions, but to also provide financial cover that will reduce your medical expenses while providing income for the period of time that you are unable to work.

Tax benefits: Tax savings are one of the least known benefits of a life insurance policy. Section 80C of the Income Tax Act, 1961, provides for tax deductions on premium payments.

Life, as we know it, is essentially divided into four stages. In a similar fashion, a life insurance policy will also have its phases and each phase will have its own prerequisites and features.

Mentioned below are the essential stages of life insurance policies that in turn coincide with the stage of life an individual is in.

No Insurance for Early Life: In the absolute nascent stage of our lives, we are the ones who depend on elders, and hence are known as dependants. The primary reason for people to invest in a life insurance policy is to protect their loved ones in case there is an emergency or an unforeseen event occurring in the future. At a fairly young age, children do not need life insurance policies as they are the ones who act as dependants. However, parents have the choice to invest in a plan for their children, which will typically aim at generating funds for the child’s education.

Insurance for Young Adulthood: This phase of life insurance typically begins when you complete your basic education and want to continue studying. You might want to move to another city/country, take up a part-time job, or simply travel. At this stage you have limited responsibilities and your focus is on your own life. Therefore, investing in a minimal life insurance policy is a reasonable choice at this point in time. However, this stage can also be considered as the time when you invest in assets on a long-term basis, for example, a car. This particular phase typically lasts till one reaches the age of 25.

Insurance for Old Adulthood: This phase is usually the time when people think of settling down and having a family. Therefore, a more elaborate and comprehensive cover is what people opt for. This is also the time when people start investing generously for a secure future. Some may choose to buy a term insurance whereas others might choose to stick to a standard life insurance policy. Whatever the case may be, buying a policy at this stage is imperative.

Insurance for Old Age: This is the time when individuals usually find themselves with increased disposable income, since most of their loans have been paid off. And with reduced responsibilities, it is a good plan to invest in a limited life insurance cover. People at this stage can also opt for a comprehensive retirement plan so that a lack of financial security does not become a burden in the future.

Few tools are as effective for long-term financial planning as life insurance. However, in order to ensure the incorporation of a life insurance policy into your portfolio, it is crucial to understand the manner in which life insurance works and when payouts can be claimed.

Life insurance works in a fairly simple manner. Customers will have to make premium payments to the insurance company at regular intervals of time, and in exchange, the company will guarantee the policyholder with a lump sum pay out to his / her beneficiaries in case of his / her untimely death. The premium payments made to the company will accumulate over a period of time and provide bonuses as well.

Benefits under a life insurance policy are usually paid out to the nominee or beneficiary upon the death of the policyholder. To receive the sum assured, the nominee will have to file a death claim with the insurance company for which he / she will have to furnish a copy of the policyholder’s death certificate in addition to any other documents as required by the insurance company. Most insurance providers take around 30 days to review the claim before deciding to make a payment or denying the claim. It takes between 30 and 60 days for an insurance company to settle the claim with a nominee or beneficiary of a policyholder. While there is no specified time frame, most insurance companies try to settle claims as early as possible because it helps them in avoiding high interest fees for delay in payment of claims.

While most claims are paid out without much concerns, there may be situations that cause the insurance company to delay the payment of your claims. For instance, in case the policyholder dies within the first two years following the purchase of a life insurance policy, the nominee or beneficiary may have to wait for a period of between six and 12 months before receiving the payment because the policy may contain a contestability clause due to which the insurance company will have to investigate the original application and confirm there was no fraud committed. A number of life insurance policies also come with a suicide clause that enables the insurance provider to reject claims in case the policyholder commits suicide within two years of taking out a life insurance policy.

Since all life insurance policies pay out a lump sum amount to the beneficiaries or nominees upon the death of the policyholder, it is essential for the nominee or beneficiary to contact the life insurance policy immediately after the death of the policyholder and commence the claims process as soon as possible. A certified copy of the policyholder’s death certificate must be obtained and submitted to the insurance company along with the original policy document and any other document requested by the insurer.

Over the past 20 years or so, an increasing number of life insurance companies have designed and made available policies that enable their policyholders to withdraw money against the policy’s face value. In case you are critically or terminally ill and need funds to meet emergency expenses, you may avail a loan or withdraw money against your insurance policy by simply submitting the necessary documents to the insurance company along with a letter that states the reason for your withdrawal.

The most important thing to do before taking out a life insurance policy is to evaluate and understand your insurance requirements. Following are the points you will have to consider before purchasing a life insurance policy:

Debt: Regardless of what kind of debt you may have, be it loans, credit cards, mortgages, or car loans, they have to be repaid in full before you can apply for a life insurance policy. In case you have a mortgage worth, Rs.20 lakh and a car loan worth Rs.2 lakh , you will have to have a minimum of Rs.22 lakh in your policy for the coverage of your debts.

Income replacement: The terms and conditions of your life insurance policy will depend largely on income replacement. For instance, in case you are the sole provider for your dependents with an annual salary of Rs.10 lakh, you will require a policy payout that is not only sufficient to substitute your income, but also slightly additional to guard against inflation.

Future commitments: In case you wish to pay for the education of your children or their marriage, an estimate of the costs will have to be created so that they can be added to the amount of coverage you wish to avail. For instance, if your annual income is Rs.10 lacs and you have a mortgage of Rs.40 lacs, and also wish to send your child to university for Rs.20 lacs, the ideal coverage in this case would be around Rs.1.4 crores as you will require around Rs.1 crore to replace your annual income, Rs.40 lacs for the education expenses and Rs.20 lacs for your mortgage expenses. After the face value has been ascertained by your insurance provider, you may start looking around for a policy that will best suit your requirements.

Insuring family members: There are bound to be other people who you would like to insure. It is advised that you only insure individuals whose death would translate into a financial loss for you. For instance, a child’s death may be an emotionally turbulent affair, but it does not leave you with a financial loss. On the other hand, an income-earning member’s death will not only affect you emotionally, but also financially. In such cases, income replacement strategies can be incorporated to help you determine whom to insure and for how much.

Even before the era of online premiums calculators existed, people did feel the need to analyse their life insurance requirements and wanted to know how much is just enough for them and their family members. This was done through the assistance of financial advisors and experts who used to sit down with the policyholders and used to help them calculate their life insurance requirements and needs. This activity basically includes two things:

The advisor will essentially add up the existing debts that you have along with your monthly (daily) expenses and income. The result will then be multiplied with the number of years that your family will require financial support for. You can also add any additional expenses that you are expecting, like a marriage in the family or your child’s higher education in a different country.

The advisor will then minus your current existing assets, including the value of any existing life insurance policy that you may have. This will also include any future assets, for example social security benefits.

The remainder that you have at the end of the calculation is essentially the amount of coverage that you need for your family. This is the amount that should ideally be your death benefit. The period of time that your family will need the coverage for is known as policy term. Policyholders are free to choose from a wide array of policy terms made available by insurance providers.

The general thumb rule of life insurance is always selecting a coverage that is ten times more than your current annual salary. However, circumstances and financial requirements vary from one individual to another. What one person needs as a coverage might not suffice for you. Therefore, it is important to carefully calculate your financial expenses in the future before purchasing a comprehensive life insurance policy.

Since life can be uncertain, it is essential to have a proper savings plan in place in order to deal with unforeseen circumstances and emergency expenses. One of the best ways through which you can plan your savings while also ensuring that you and your loved ones are financially secure.

There is no particular time that can be considered as the ‘right time’ to purchase life insurance as it depends on individual requirements and circumstances. The market has a number of options with varying terms and implications, and the key to picking the right policy lies in research and comparison. If you find the right policy at the right age, the benefits you reap when you most require it can be truly helpful. It is also important to consider such factors as future plans, dependents, income, etc. in order to make an informed decision about the policy term, the premium and the cover.

Purchasing a life insurance policy in your twenties: Purchasing life insurance in your twenties can be an inexpensive and relatively easy affair as most life insurance providers take in to consideration the fact that you have the ability to make premium payments for several years after availing the policy. In strict statistical terms, they are at relatively low risk to pay out. Moreover, most people in their twenties are at a stage where they have just commenced their professional life, and, as a result, are debt free in comparison with older age groups. Therefore, life insurance companies prefer younger applicants as it helps in planning their savings and future at relatively low risk to the company.

Purchasing a life insurance policy in your thirties: During your thirties, you are likely to have a family of your own. While your income increases, so will your need to ensure your family’s security and financial protection for your assets. In case you are purchasing a life insurance policy in your thirties, the first and foremost point of consideration should be given to your family’s future requirements. Most insurance agents and market experts recommend a policy that is 10x your yearly salary to safeguard your assets and children.

Purchasing a life insurance policy in your forties: During your forties, investments must be made after considering factors like your retirement plans, your children’s higher education and care of aging parents. A long-term policy is recommended at this stage as it will ensure that your dependents will be covered for a significant period of time and you will also have enough time to clear your loans and mortgages. A permanent insurance policy is the best option as it offers cash accumulation as well as financial protection.

Purchasing a life insurance policy in your fifties: Most people in the fifties do not really require an insurance policy as they will have likely cleared most of their debts and their children will quite possibly have completed their education too. However, permanent life insurance plans are a great option to consider at this stage as they can come in handy if you plan to create an inheritance for your children. Keep in mind that life insurance at this point of your life will be relatively expensive due to enhanced health risks related to old age.

Purchasing life insurance need not necessarily make sense for all individuals. In case you do not have any dependents, and possess adequate assets to cover all costs related to your death, such as lawyer fees, funeral expenses, etc., then you need not take out an insurance policy. Life insurance is also not necessary in case you have dependents but also have adequate assets to cover them in case of your unfortunate and untimely death.

However, in case you are the main provider of your family and also have debts that are significantly larger than your assets, insurance will work out beneficial for you. Taking out life insurance will ensure that your dependents are covered in case of your death. While many individuals consider life insurance as a form of investment, it does not offer too many attractive benefits when compared with other conventional investment instruments. Some kinds of life insurance policies are considered as instruments for investing funds for retirement or savings, and are known as cash-value policies, and they are basically policies that help in building up a pool of money that accrues interest, and a percentage of the money will paid out to you upon the maturity of your policy.

Cash-value policies are the preferred selling instruments for insurance companies and they hire agents who aggressively promote these policies in exchange for commission. In case you wish to surrender a cash-value policy, insurance providers recommend that you avail a loan from your savings to continue making premium payments. While this solution seems easy, you will incur costs due to the loan as interest payments will have to be made to the insurance provider for the money you have borrowed.

Term insurance, on the other hand, allows you to purchase a policy that will pay out a predetermined amount of money in case of your unfortunate demise during the policy term. However, no amount will be paid in case you are alive when the policy term coms to an end. The reason this product was designed in such a manner is to ensure that your assets make you self-insured over a period of time. However, convertible and renewable term insurance policies are the best options regardless of your debts, income, lifestyle, etc. The coverage offered by them is similar to that offered by cash-value policies and they are also comparatively cheaper.

If your term life insurance policy has a renewable clause, it means that you will be allowed to renew your policy at a predetermined rate without the need to undergo a medical examination. In essence, in case you have been diagnosed with a serious illness when the policy has expired, the policy can be renewed at a competitive rate. Convertible insurance policies offer the opportunity to convert the policy’s face value into a cash-value plan provided by your insurance company when you attain 65 years of age and do not have the financial security to do without insurance. A comprehensive research and comparison of policies will help you better understand which plans best suits your personal requirements and how much coverage you will require.

Purchasing a life insurance policy is considered essential nowadays because it ensures that your dependents will have the financial resources to cope with their daily expenses in case of your unfortunate and untimely death. While life insurance is not necessary for every individual, it definitely plays a crucial role in ensuring the financial security of the family of an income-earning individual, and it becomes all the more important for individuals who are the sole earners in their families.

Insurance can also come in handy for individuals who wish to repay personal loans or home loans, or those who have children that require funds for marriage or higher education. In essence, life insurance policies serve as contingency plans that ensure that your nominees or family members will remain financially stable in case of your demise as the insurance company will pay them a lump sum amount. Based on the kind of policy you purchase, you can also avail a healthy savings-cum-investment instrument that will qualify you for tax benefits as well.

Thanks to advancements in technology, you can now compare life insurance policies from the comfort of your home. All you need is a computer and an internet connection in addition to a payment account such as a debit or credit card. But before you choose a policy and pay for it, it is essential that you do your homework and ensure that the policy is select has all the features and benefits that will come to good use in the future. Following is a brief description of the various policies at your disposal and the important points that must be considered before selecting a life insurance plan:

Term Life Insurance Plans: Term insurance policies are usually basic plans that are designed to provide financial cover to the dependents of a policyholder in case of the untimely death of the insured individual. However, term plans do not offer a payout in case the policyholder is alive on the date of maturity. Moreover, the premium payments are also retained by the insurance provider, meaning that benefits will only be paid out in case the insured individual dies. If you want to protect your family’s financial interests above everything else and do not mind if you do not receive a payment at the end of the contract, a term insurance plan is perfect for you.

Whole Life Insurance Plans: Whole life insurance policies cover the life risk of an individual for the entirety of his / her life. In case of the death of the insured individual, the insurance company will pay a lump sum amount to the family or nominees. The premium payments associated with whole life insurance policies are relatively high, but these policies offer maturity benefits as well as death benefits. However, the maturity benefits might not be the regular lump sum payments that are usually paid out on the date the contract expires. Instead, these policies offer a benefits when the policyholder reaches a certain age (generally between 80 and 100).

Endowment Plans: Endowment plans work as insurance-cum-investment instruments that pay out the sum assured to the nominees or beneficiaries of the policyholder in case of the untimely death of the insured individual. The main difference between an endowment plan and a term life plan is that the former offers death benefits as well as maturity benefits. In case the insured individual is alive when the policy term comes to a close, the premiums paid by the individual will be returned on the date of maturity along with a proportion of the total premium payments which acts as a return on your investment.

Money Back Plans: Money Back Plans are considered among the best and most effective insurance solutions as they offer a periodic payment to the insured individual as soon as the initial premium payment is made. In case of the untimely death of the insured individual, the beneficiaries / nominees will be eligible for the death benefits which usually comprise of the total sum assured. In case the insured individual is alive on the date of maturity of the life insurance policy, the insurance company will pay out the total premiums made by the policyholder in addition to an extra payment or bonus which serves as a return on their investment.

Unit-Linked Insurance Plans: Unit-linked insurance policies are investment-cum-insurance plans that are unit-linked and participatory in nature. These plans pay out a predetermined lump sum amount to the beneficiaries / nominees of an insured individual in case of the untimely death of the policyholder. Although the premium payments related to unit-linked insurance policies are relatively high, they do offer maturity benefits in case the insured individual survives the entirety of the policy term.

Pension / Annuity Plans: Pension or Annuity life insurance policies are non-participating, traditional plans wherein the policyholder can pay a lump sum amount to purchase an annuity. The annuity will be in the form of payouts that the insured individual can opt to receive over regular intervals of time. These plans are ideal for retired individuals or individuals who are approaching retirement age as it offer liquidity as well as life cover in the shape of a steady income stream. Unlike other kinds of insurance, the benefits provided by pension / annuity plans can be availed when the policy term is still in progress.

Life insurance policies are often considered incomplete without riders. While term life insurance policies are the most popular kind of insurance purchased by Indian individuals, they have been designed in a manner such that they offer maximum protection to the family of the policyholder in case of his / her untimely death. However, additional financial cover can be obtained through a life insurance policy by incorporating riders into them.
Riders are basically additional features that enhance the value of a life insurance policy while providing extra benefits that are not covered by the original policy document. Availing a rider along with an insurance policy may slightly increase the premium amount depending upon the kind of raider you have purchased. If you are looking to choose an optional rider to increase your insurance cover, it is essential to understand each rider and what kind of benefits it offers. Following are the most popular riders that can be availed in addition to your life insurance policy:

Critical Illness:

Since life is uncertain and we are prone to contracting medical conditions from time to time, a Critical Illness rider is an excellent option to reduce unnecessary expenses. Life insurance policies do not usually cover medical and hospitalisation expenses, which means that if you fall sick despite holding a life insurance policy, you will have to bear all the costs related to your treatment by yourself. A Critical Illness rider can prove very beneficial as it not only ensures that you have financial support when it comes to paying your medical bills, but also provides access to quality medical attention, thereby ensuring that treatments are not ignored or delayed owing to lack of finances.

A Critical Illness rider usually covers medical expenses related to illnesses such as stroke, heart attack, kidney failure, paralysis and cancer among other illnesses. In case you purchase this rider, you can breathe relatively easy in times of ill health, knowing fully well that your insurance policy will cover your medical expenses and that your family will not have to worry about the finances in addition to dealing with the emotional trauma. Individuals who purchase the Critical Illness rider will receive a predetermined lump sum amount the moment they are diagnosed by any of the aforementioned conditions or the conditions mentioned in the terms and conditions section of the policy document.

Partial and Permanent Disability:

Given the uncertainty of life, an incident or accident has the potential to render an individual disabled. In case of disability, the individual is impaired to the extent that he / she cannot work and earn the income they require to support their family, thereby affecting the lifestyles of both, the individual as well as his dependents. In such cases, the individual will require an alternate source of income to ensure the healthy functioning of his / her family. A Partial and Permanent Disability rider is the best bet in such cases as it provides staggered payments to the individual in case he / she has met with an accident due to which they are disabled and unable to work. These payments are generally a certain percentage of the total sum assured (10% or more in most cases), and ensure that you can meet your financial requirements even if you are partially or permanently disabled.

Accidental Death:

The Accidental Death rider is an ideal option for those who intend on ensuring that their families have adequate financial resources in case of their untimely and accidental death. In addition to considerably high medical costs, the number of unfulfilled financial liabilities are also usually high in case of an individual’s accidental death, making it very difficult for his / her family to cope with the financial requirements.

An Accidental Death rider comes in very handy in such situations as it will ensure that the individual’s family will receive an additional payment in case the policyholder dies from an accident. Although the basic sum assured will be paid out to the nominees upon the death of a policyholder, the Accidental Death rider provides the family with extra funds to ensure that they can manage all their expenses, thereby making it less stressful to deal with the loss of a loved one.

Waiver of Premium:

In case you fail to make a premium payment on time, you will receive a notification from the company to ensure that all due premiums have been paid within a predetermined grace period. Failure to make premium payments within the stipulated time period often results in a situation wherein the policy is considered lapsed. As a result, the policy will no longer be active and you will not be eligible for the benefits upon maturity of contract. There could be a number of reasons as to why an individual may not be able to make premium payments, but regardless, the policy will be rendered useless. In such a case, the rider called Waiver of Premium can come in handy.

Even if you cannot make premium payments for a certain period of time, be it because of disability or unemployment, purchasing a Waiver of Premium rider will ensure that your policy does not lapse so that you can enjoy all the benefits upon maturity as initially agreed. The rider will allow your premium payments to be waived off but the policy will continue as per the initial agreement.

Income Benefit Rider:

The demise of a sole-earning member of any family can be a devastating loss and make it hard for the dependents to carry on with their lives in the same manner as before. If you have a family whose financial requirements are met solely by your income, it is essential to ensure that they have a regular source of income in case you are no longer able to provide for them. The Income Benefit rider is perfect for individuals who wish to ensure that their family’s lifestyle remains unaffected in case of their untimely death. As the name suggests, the Income Benefit rider provides regular income to the family of a deceased policyholder, and the amount payable to the nominees through such a rider is usually a percentage of the total sum assured. Purchasing this rider will ensure that your family will be financially secure and have lesser concerns to deal with in case of your untimely death.

Why Compare Life Insurance Plans Online?

The importance of comparing life insurance policies before purchasing one cannot be stressed on enough. Following are a few simple reasons as to why it is absolutely necessary for you to compare life insurance plans online:

Simplicity: Although life insurance plans are relatively easy to understand, comparing different policies will make it simpler to understand the benefits offered by various policies and how exactly they can be of good use to you. Moreover, there are such concepts as cash value and division of premium payments which are rather hard for the average individual to understand. Comparing different policies will make it easier to understand these concepts as you can put different features of different policies together to figure out which policy works best for you.

Pricing: If you decide on the kind of policy you wish to purchase and proceed to actually buy it without comparing it with any other similar policy, there is a good chance that at a later date, you will find another plan that offers better benefits than the one you purchased, and that too for a lower price. Comparing different policies will make it easier to find out which policy offers what kinds of benefits and how much it costs, thereby helping you make an informed purchasing decision.

Flexibility: Since all life insurance policies are different in the sense that they offer different benefits and features at varying prices, it is important to find a flexible policy. It is important to note that not all policies allow you to make changes to your terms and conditions once the policy term has commenced, but doing your homework before purchasing a life insurance policy can help you pick one that will meet your long-term criteria. For instance, almost all policies lapse after a certain point following the policyholder’s default on premium payments. However, comparing policies can help you find those that offer all the benefits you wish to receive while offering you the option of using riders such as Waiver of Premium. Also, comparison can help you find the best convertible and renewable policies so that your long-term goals are on track.

Tax benefits: While insurance policies offer tax benefits in the form of exemptions, it is important to understand what kind of benefits you are eligible for. Moreover, some policies yield tax-free income, and comparing different policies can help you avail maximum benefits.

Lower premiums: Since the premium payments for each life insurance policies is based on a set of factors, comparing different policies will help you identify those that offer the same benefits as other policies but charge a comparatively lower premium. For instance, you may purchase a term insurance policy of 20 years with the sum assured being Rs.10 lacs and the yearly premium set at Rs.3,000, but if you wish to purchase an endowment policy with the same death benefit, your premium payment could be in excess of Rs.30,000 per year, thus making it essential to compare different policies to find the one that best suits your insurance needs.

When life insurance companies calculate the premium for each individual, there are certain factors that are taken into consideration. Since life insurance is a form of investment, even low premiums have the potential to yield relatively high returns over a period of time. However, availing a life insurance policy with a low premium may not always be possible as you will have to meet some requirements as laid down by the insurer. With that said, some individuals tend to avail similar life insurance policies as others at significantly low costs. The reason for this is that these individuals have made the right life choices that have enabled to avail lower premiums.

Following are the factors that are taken into consideration by life insurance companies for the calculation of premiums:

Age: Age is a critical factor when it comes to determining premium rates. Younger applicants are likely to receive lower premiums while older individuals may have to pay a relatively high amount. The reason being, life insurance companies believe that younger people are less likely to contract terminal illnesses or die during the policy term. Older people, on the other hand, are at a greater risk of contracting major diseases or die during the policy term. Hence, the risk undertaken by a life insurance company is considerably lower in case of young adults, and much higher for old individuals, thereby resulting in differing premium payments for each set of individuals.

Gender: Although most life insurance companies do not discriminate between genders, they do believe that the life expectancy for different genders is different. Statistical studies and findings have shown that women live five years more in comparison with men, thus affecting their premium payments. In essence, most insurance companies offer lower rates for women so far as premium payments are concerned.

Health records: Most life insurance companies undertake a thorough research of their applicants before offering them an insurance policies. Individuals who apply for a life insurance policy will have to provide their health records so that the company can confirm that the individual has no chronic illnesses or potential health problems that might increase their risk. Individuals with clean health records are bound to avail lower premium rates while those with health problems will have to pay slightly more.

Medical history: The medical history of an individual has the potential to increase or decrease their premium payments. If you have no medical history of life-threatening diseases such as cancer, then you can expect a lower premium payment rate. However, individuals whose medical records show that they are prone to contract these hereditary problems will have to pay a relatively high rate of premium.

Smoking: Smoking is a habit that is not only dangerous, but also puts you at risk of contracting serious diseases in the future. As a result, life insurance companies are sceptical about undertaking the risk of insuring smokers. However, smokers can still avail life insurance policies despite their habit, but the premium payments that will be applicable to them are usually at least twice as much as non-smokers would pay.

Drinking: Consumption of alcohol is not only injurious to health in the sense that it leaves you open to potentially fatal problems in the future, but it can also affect your premium rates to a considerable extent. Alcoholics are bound to pay relatively high premiums while non-drinkers can avail life insurance policies for considerably good terms. It is for this reason why insurance companies ask you in advance if you smoke or drink.

Type of policy: The kind of policy you select can also affect your premium payments. The longer the policy term, the higher the maturity and death benefits. Hence, policies with longer tenures will be offered at a higher premium than short-term policies.

Profession: Individuals who work in dangerous professions such as fisheries, oil and gas, mining, etc., are at a higher risk of dying or contracting potentially fatal diseases. Hence, the risk undertaken by an insurance company to cover such individuals is comparatively higher than that undertaken to insure an individual who works in a bank. Therefore, individuals who ply their trade in dangerous professions are likely to face higher premiums.

Lifestyle choices: Individuals who live on the metaphorical edge are likely to pay higher premiums. Insurance companies take note of individuals who take risks such as climbing mountains, driving fast cars, etc., as these individuals are more likely to be a liability to them than the average customer, thereby charging them a higher premium.

Obesity: Obesity is related to health conditions such as Osteoarthritis, coronary heart disease, cancer, blood pressure, stroke, etc. that can lead to further complications. As a result, obese individuals are charged higher premium because they are a higher risk to the insurance company.

Once the insurance company has taken the aforementioned factors into consideration, it will determine the amount of premium applicable to an individual, making it essential for you to ensure that you lead a healthy lifestyle and make the right choices in order to avail the best possible rates.

The premium charged on your life insurance policy is the amount of money levied by insurance providers for coverage. The premium charged by each company may vary, making it important for you to compare different policies to find the one that best suits your requirements. However, there may be times when the quote for a premium may differ from the premium that is actually charged as it will depend on the manner in which the premium is computed.

Mathematical calculations and statistics done by the insurance provider’s underwriting department will determine the premium charged to an individual. In most cases, the statistical data regarding the health, age and life history of an individual are taken into consideration when computing the premium. For instance, a youngster driving a fancy sports car will likely have to pay a higher insurance premium in consideration with a middle-aged individual who drives a sedan. The underwriting process is applicable to all individuals who wish to avail life insurance, and it entails investigation of filial illnesses, analysis of reports such as motor vehicle reports and medical information bureau.

Once the underwriting department of your insurance provider has gather all your information and analysed it, an actuary will scrutinise it further to determine your risk to the insurance company. The actuary will also forecast how likely you are to make a claim on your policy, and the higher your chances of making a claim, the higher your premium payment will be. The actuary will also peruse mathematical information after which he / she will compile “mortality and sickness” tables based on which potential losses you will incur due to illnesses and death will be noted. There tables are used by actuaries to create models that ascertain how likely an individual is to contract illnesses or die. The premium charged to you will be determined by these results.

Nowadays, when you want to make your premium payments for your life insurance plan, you can do it online conveniently. The different online premium payment options include net banking, debit card, credit card, mobile banking, etc. You can also go for automatic payment options where your premium amounts will be deducted from your account directly on a quarterly, half-yearly, monthly, or annual basis depending on the premium payment mode that you choose. The payment options include eCMS, NEFT, Electronic Clearing Service (ECS), Standing Instructions (SI) mandate, Auto debit facility offered by RBI, etc. These online payment options will depend on the life insurance provider that you choose. You can make these payments by logging into the official website of the company or by visiting your bank’s internet banking portal.

Life Insurance Policy Cancellation:

There could be several reasons as to why you may want to cancel your life insurance policy. It could be because you no longer possess the money to make premium payments. It could be because you have a dire need to cash out the policy. It could be for any reason, but regardless of the reason, it is relatively easy to cancel your life insurance policy. Following are a few tips on how to cancel your insurance policy:

Visit the website of the company from which you purchased a life insurance policy: Regardless of whether you have purchased a policy from a regional or large national insurance provider, visit their website to check their cancellation policy. The website of the company can be found on any correspondence piece that you have received from the insurer. You can also run an internet search for the website by typing your insurance provider’s name.

Contact a broker: Prior to the cancellation of the life insurance policy, it is advised that you establish contact with an experienced broker and clarify whether or not you are making the right decision. Even if you are convinced about cancelling the policy, it is best to talk about it to an expert as it will help you better understand whether or not you are doing the right thing by cancelling your policy. Individuals who have no brokers can contact their life insurance company and request for one.

Contact an accountant: Cancellation of life insurance policies can leave the door open for tax implications. Earnings and excess premiums help in building up the cash value for universal and whole life policies. When a policy is cancelled, a cheque for the specific amount is cut by your insurance company, and this amount may or may not qualify for tax deductions. It is therefore essential to contact a seasoned tax professional as he / she will have answers to all the questions you may have about the tax implications associated with the cancellation of a life insurance policy.

Consider partial withdrawal policies: Individuals who have purchased universal life insurance policies are usually allowed to withdraw a partial amount from their policy without the need to completely cancel their policies. Partially withdrawing funds from your policy will free up some funds that can be used immediately, and, at the same time, will still leave some funds in the policy so that your family members / nominees are covered in case of your untimely death. However, partial withdrawal is somewhat similar to taking a loan against your life insurance policy, and it can have consequences, making it instrumental for you to consult a broker before considering partial withdrawal. For instance, some policies lower the death benefit when you opt for partial withdrawal and you will not be allowed to repay the amount withdrawn in an effort to raise the amount again. Moreover, in certain situations, you will have to pay a tax on the amount you wish to withdraw from your policy.

Steps to Cancel Your Life Insurance Policy:

If you are absolutely certain that you will be cancelling your life insurance policy, following are the steps that can help you do just that:

Follow the procedure: In case you wish to cancel your life insurance policy, the insurance company will require you to fill out the cancellation form. A few personal details along with details regarding the policy will have to be entered in the form, and a copy of the same must be kept with you.

Present everything in writing: In case you wish to pose any questions to the life insurance company, or make any declarations, make sure you do it in writing. For instance, if you wish to find out how the penalty charges associated with cancellation are computed, you could fire an email instead of getting your solutions over the phone. Written queries have a better chance of receiving responses, and documentation helps in settling any potential disputes between a policyholder and the insurance company.

Revoke automatic payments: In case you make premium payments automatically via your credit card or checking account, these payments can be cancelled by calling your credit card company or your bank. You will have to contact your credit card company or bank at least three business days prior to the scheduled withdrawal. Cancellation can also be requested over the phone, but most banks require you to follow up on the same in writing as in most cases, the verbal cancellation request is rendered ineffective after a fortnight.

Following up: In case invoices for premiums are continued to be sent to you, you will have to contact the insurance company through a letter and include copies of any documentation that was retained at the time of cancelling the policy. In case a premium has been deducted by mistake from your checking account, a refund must be requested in writing.

Many employees in India can get life insurance with the help of their employer. This is known as the employer-employee structure. The employer will purchase insurance from the insurance company and then the employee will be insured. This brilliant facility is being offered by many employers in order to retain and motivate employees efficiently. When life insurance policies are offered by the company, employees get attracted and stimulated to work at an organisation. The attrition rate will also minimise with the provision of life insurance.

You can check with your employer if you will receive life insurance. Under the employer-employee structure, the employee will receive the benefits of the policy and also tax benefits. You will not have to pay any tax for such an insurance policy. You can buy any type of life insurance under this particular structure.

Your company will most likely offer a life insurance policy to employees if it is a sole proprietorship firm or a legal or corporate firm with at least 5 employees who can purchase the life insurance policy. Your employer will need to draw a single cheque to offer coverage to its employees.

Eligibility Criteria for Availing Life Insurance Offered by Employers:

When an employer offers life insurance policies to its employees, certain eligibility criteria need to be met:

The policyholder will need to be at least 18 years old and lesser than 60 years old.

The policyholder can be an Indian employee or an NRI.

An NRI employee can apply if the employer that is offering the policy has an office that is registered in India.

Do your research: Given the number of options at your disposal when it comes to selecting the right insurance provider and then choosing the policy that best suits your requirements from the vast array of options, it is essential to do your research before purchasing a life insurance policy as it can not only help you save a good amount of money, but it can also help you receive maximum benefits. Make sure that you have also checked up on the insurer to ensure that there are no unexpected hassles in the future.

Go through the terms and conditions: The terms and conditions document of your insurance plan contains all the information regarding the policy. Most people do not pay attention to every detail and as a result, end up dealing with disastrous consequences in rather difficult situations when making claims. Make sure that you read the fine print completely and understand it fully before purchasing an insurance policy.

Consider lock-in period: There are instances when individuals purchase insurance policies but realise within a few days or weeks that they are not entirely satisfied with the terms and conditions of the policy. In such cases, some insurance companies offer a free lock-in period, which is a short span of time in which a policyholder and return the policy to the insurer for no penalty or charge. Lock-in periods are usually 15 days long, so make sure you purchase a policy with the aforementioned feature as it will make it easier for you to return the policy and purchase another in case you are not happy with your initial purchase.

Consider premium payment options: Most insurance providers offer premium payment options on an annual, semi-annual, quarterly or monthly basis. It is instrumental that you pick a time period that will allow you to make premium payments without other consequences. Regardless of your premium payment option, it is also advised that you choose the Electronic Check System to make premium payments as it will ensure that you make never miss a payment date.

Don’t hide anything: There are instances wherein individuals try to conceal some information when filling out the application form and purchasing an insurance policy. Your medical history has to be accurately presented to the insurance company, and you must also notify them if you are a smoker as every detail requested by them is an important factor in determining the terms and conditions of your insurance policy. Missing or misleading information can cause major problems when trying to make claims, even a total rejection of claims in some cases.

Now, even SMEs can provide life insurance policies to its employees. They only need to fill a proposal firm which mentions that they would like to go for the employer-employee scheme and that it will be paying premiums for its employees. The form will need a signature from a certain authorised party working at the company. The form will need details such as names of employees who want coverage, type of insurance plan, policy period, riders, and sum assured. There should also be a stamp or seal of the organisation.

The organisation will need to fill and sign both the nomination form as well as assignment form and furnish these forms to the insurance company at the proposal stage.

The employer will need to fix the insurance quantum according to the CTC of the different employees, work experience, qualification, and previous work records of the employees.

Life insurance is not exempted from GST (Goods and Services Tax). The introduction of GST will have an impact on the life insurance industry. The insurance premiums will most likely increase from 15% to 18% in the insurance sector. If you are paying premiums for health, car, and life insurance, you will be affected heavily.

GST Code for Life Insurance:

Under the GST regime, there is a Services Accounting Code (SAC). This code is applicable only for services that come under GST. The SAC for GST classification for life insurance services (not including reinsurance services) is GST Code for Life Insurance. Similarly, the SAC GST code for pension services is 997131.

The on-going debate surrounding the linking of Aadhaar to insurance policies, and a string of other important services had previously created some confusion among policyholders and citizens availing these services. As per an earlier Supreme Court ruling, it was mandatory to link your Aadhaar details to not only insurance policies, but also your mobile number and a number of other facilities. The deadline given for the same was 31 March 2018. However, in a second ruling which was passed on 13 March 2018, the Supreme Court said that the deadline for linking Aadhaar has been extended indefinitely, till a judgement is announced for the same.

The implications of this decision for insurance policyholders are varied, depending on whether you are an existing policyholder, or are looking to purchase a new insurance policy. Existing policyholders will not be required to link their Aadhaar to their policy, until a decision on the matter is announced by the Court.

However those who are looking to buy a new life insurance policy will be required to provide their Aadhaar and PAN/Form 60 details at the time of registering for the policy. This means that new insurance policies will need to be linked to the policyholder’s Aadhaar number, for which IRDAI has granted policyholders 6 months, starting from the date of registration. If the policyholder does not have an Aadhaar Card, they will be required to provide any other “officially valid document”, from the list of documents mentioned in the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005. These documents include your driving licence, passport, PAN card, job card issued as per Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and the voter identity card issued by the Election Commission of India.

Insurer and Insured: The insurance company that sells a life insurance policy to an individual is called the insurer while the individual who purchases said policy is the insured.

Grace Period: When a life insurance policyholder is unable to make his / her premium payments on time, he / she will receive an extension from the insurance provider to ensure that the due payment is made. This extension period usually spans between 15 and 30 days and is called the grace period.

Free-Look Period: In case you are not satisfied with the terms and conditions of an insurance policy, or, for any other reason, would like to cancel the policy, you may do so during the Free-Look period without having to pay any fees or penalties like surrender charges.

Lapsed Policy: When a policyholder fails to make premium payments on or before the due date, and does not make the payments even after the grace period, the insurance company ceases the benefits offered by the policy and terminates it on account of non-payment. Such a policy is called a lapsed policy.

Death Benefit: Upon the untimely death of a policyholder, the nominee or beneficiary will be eligible to receive a payout from the insurance company. This payout is called the death benefit.

Accident Benefit: In case you meet with an accident and are covered by a life insurance policy, there may be a clause in your policy which covers all the costs related to the accident, like medical expenses, hospitalisation expenses, etc.

Sum Assured: The total amount of money guaranteed to an individual at the time of maturity of a life insurance policy is called the sum assured. The sum assured does not include bonuses that may be added at a later date.

Cash Value: In case the life insurance policy of an individual is voluntarily terminated prior to the date of maturity, the life insurance company will pay the customer a certain sum of money called the cash value. The cash value of the policy is its present value and the cost at which it can be sold.

Claims Settlement Ratio: The ratio of claims that has been paid by the insurance provider to the nominees of a policyholder and the overall number of claims received from customers is called the claims settlement ratio. The other claims are usually either denied for reasons such as fraud, misrepresentation, impersonation, etc.

Reinstatement: In case an insured individual does not make the due premium payments for any reason, and the insurance company, as a result, decides to terminate the insurance policy, the policyholder will have an option to renew the coverage, and the process of making a lapsed policy active again is called reinstatement.

Rider: Insurance companies offer customers the option of adding extra features to their policy at a nominal fee. These extra features that can enhance the value of your insurance policy and deliver additional benefits are called riders.

Moral Hazard: When a policyholder is involved in events or situations that could increase the risk of an insurance company to incur additional costs on behalf of that particular individual, he / she is known as a moral hazard.

Vesting Age: The age at which an individual starts to receive payouts from the insurance company is called the vesting age.

Bonus: The additional amount of money received by an individual when the policy term is active, or when the life insurance policy matures, considering that he / she has made all premium payments as required for a certain number of years, is called a bonus.

Convertible Term Life Insurance Policy: Convertible term life insurance policies allow the policyholder to convert the term life insurance policy to a permanent life insurance policy. However, there will be a specified time limit for the customer to make such a conversion.

Renewable Term Life Insurance Policy: Term insurance policies that have a clause that enables beneficiaries to increase the policy term for a specified period of time are called renewable term life insurance policies.

Policy Term: The total number of years for which an individual will be covered by an insurance policy is called the policy term.

Premium Paying Term: The total number of years for which a life insurance policyholder will be making premium payments to the insurance company is called the premium paying term. Premium paying terms are usually the same as policy terms.

Single Premium Life Insurance: Single premium life insurance plans are those that cover individuals for a certain period of time and guarantee payment to benefits to nominees upon the untimely death of the policyholder, provided that the policyholder has made a lump sum payment as premium.

Waiver of Premium: Policyholders have an obligation to make premium payments at regular intervals of time. Waiver of Premium is a rider that can be purchased in case the policyholder is disabled or seriously ill, and, as a result, is unable to make premium payments. Waiver of premium ensures that you continue to receive the benefits from your insurance company even when you can no longer afford to make premium payments.

Q. How do I choose the best life insurance policy?

ANS:Choosing a life insurance policy depends on your financial protection needs. Ideally, life insurance should be opted for to provide financial protection to your dependents in the unfortunate event of death. Term insurance policies are considered the best form of pure protection as they offer the highest coverage for the lowest premiums. These plans offer only death benefits. To receive maturity or survival benefits as well as death benefits, you will have to opt for TROP policies, endowment policies, pension or annuity policies, money back policies or ULIP policies.

Q. Why do term insurance policies offer higher life coverage than other types of insurance policies?

ANS: Premiums paid by a term insurance policyholder are fully utilised towards creating a life cover. Under other types of life insurance plans, only a part of the premium paid is allocated towards creating a life cover. The balance is utilised to provide for maturity benefits or as in the case of ULIPs a part of the premium is used to meet administration and sales expenses. This makes term insurance plans more affordable than other plans. This is why they are also called pure protection plans because they only offer a pay-out in the event of death of the life assured. Other plans offer returns as well as life coverage.

Q. How do I choose the sum assured and tenure of my life insurance policy?

ANS: In general, it is recommended that a person avails a cover that is at least 20 times his/her current income. However, this depends on your personal financial situation and personal profile. If you have to provide for many dependents, you would need a larger cover. If you are young, you should opt for a longer term life cover to take advantage of lower premiums. As you grow older, premiums rise for the same sum assured. Again, if you don’t have other savings avenues, a large sum assured will serve the purpose better. Always, remember to account for inflation as well. Consider loan obligations or debt that will have to be serviced in your absence. Many people ensure the chosen sum assured will cover debts in their absence. Another pertinent factor is affordable. Higher the sum assured, higher the premiums.

Q. Do life insurance policies cover only death or accidents and illnesses as well?

ANS:Life insurance policies are meant to provide financial sustenance in the event of death, primarily. However, most policies offer additional coverage for disability, accident and various illnesses. These are called riders and usually come at an additional cost although some policies do offer them as part of the primary plan.

Q. Are there any tax benefits offered on life insurance policies?

Q. Is it safe to buy life insurance online?

ANS: Yes, these days almost all insurance providers offer online purchase of life insurance. Additionally, a number of financial services providers offer this option through their websites, where you can compare and choose from a number of providers. The fact that people are increasingly turning to online purchases of life insurance policies signifies how secure the process is. Online purchases offer policyholders of comfort and convenience and in many cases the policies are cheaper since there are no sales agents involved.

Q. Can premiums be paid in instalments or are they payable in a lump sum?

ANS: Depending on the type of policy chosen, premiums can be paid either in a lump sum or in regular instalments.

Q. What is the difference between a reversionary bonus and terminal bonus?

ANS: Bonuses are offered under participating life policies i.e. policyholders can participate in the profits of the policyholder’s fund. A reversionary bonus is declared as a percentage which applies to the chosen sum assured. Reversionary bonuses can be simple or compounded bonuses. One-off reversionary bonuses are those that are paid out of one-time profits that may not occur again. A terminal bonus is the residual bonus declared on maturity or the policy i.e. if after declaration of all reversionary bonuses, there are still profits accrued to the fund, it may be paid out to the policyholder in the form of a terminal bonus.

Q. What are ‘premiums'?

ANS:Premiums are the amounts paid by the policyholder to the insurance company in order to keep the policy in force.

Q. What is a ‘bonus’?

ANS:Under certain plans, insurance companies give policyholders a share in profits. This amount is called a bonus and accrues to the policyholder at no extra cost. It is awarded at certain times during the policy period. Bonus amounts are decided by the company and are paid out in addition to the chosen sum assured. Certain plans guarantee bonus payments.

Q. What are ‘riders’?

ANS: Riders are specific to certain situations or events whereby the insurer pays the policyholder a certain amount of money when such event occurs. E.g. critical illness or disability rider. They are an additional benefit to a standard policy for higher premiums.

Q. What is a policy’s ‘free-look period’?

ANS:As per IRDA regulations, if a policyholder does not wish to continue his/her policy they can discontinue the same within the first 15 days of buying it and get a refund.

Q. What is the ‘surrender value’ of a policy?

ANS: If a policyholder wishes to cancel his/her policy, once in effect, they can surrender it to the insurer and receive the surrender value as a refund. The surrender value is calculated based on premiums paid and how long the policy was in effect. Surrender is usually allowed after a certain period of time.

Q. What is meant by ‘assignment’ of a policy?

ANS: If, for example, a policy is used to raise a loan, the policy is ‘assigned’ or transferred to the lender. The policy then bears the lender or the ‘assignee’s’ name. Once the loan is repaid the policy can be reassigned or transferred back.

Q.What must I consider before purchasing a life insurance policy?

ANS: When purchasing a life insurance policy, the most important thing to check is whether or not guaranteed returns will be provided by the plan. You must also keep an eye on the lock-in period, information regarding premium payments, the implications of defaulting on premium payments, the revival conditions, the fees that would be charged for cancelling or surrendering the policy, the availability of a loan facility, etc. Go through the terms and conditions of the policy you wish to purchase and make sure that it meets all your requirements for an affordable cost.

Q. How important are proposals and all the disclosures that are made in them?

ANS:Proposals are key components on insurance and policies are underwritten based on the disclosures made in them. It is essential that you provide only correct disclosures and statements to the insurance company or you will be at risk of rejection of claims.

Q. What medical reports will I have to submit to avail a life insurance policy?

ANS: Insurance companies may request medical reports from applicants depending upon the age at which they purchase the insurance policy, their age when the policy matures, personal and family history, sum assured, and other factors they consider crucial. For instance, if the applicant is obese, special reports such as Glucose Tolerance test or Electro Cardiograms could be requested. Similarly, depending upon your medical condition, the insurance company may ask you for one or more reports.

Q. How do life insurance companies calculate the surrender value of an insurance policy?

ANS: The surrender value of a policy is usually a percentage of the policy’s paid-up value. Insurance companies calculate the surrender value of an insurance policy based on the surrender value factor, which is the ratio between the premiums paid and the period for which premium payments have not been made.

Q. Can I avail a loan through my life insurance policy?

ANS: Some insurance companies provide loans against insurance policies to their customers. The amount of money you can avail through such a loan is usually a percentage of the insurance policy’s surrender value.

Q. What are the formalities involved when submitting a maturity claim?

ANS:Almost all insurance companies send an intimation along with the discharge voucher to you at least two to three months before the date of maturity. The intimation will inform you as to how much money you will be receiving from the insurance provider. The discharge voucher as well as the policy bond must be duly signed by the policyholder and returned to the insurance provider as soon as possible as the sooner you do so, the sooner will they be able to release your payment. In case you have assigned the policy to another individual, only the assignee will be authorised to receive the claim amount at the time of maturity.

Q. What are settlement options?

ANS: At the time of purchasing a life insurance policy, the insurance provider may design and define the manner in which you will receive the payout. Settlement options are offered by most insurance companies and they ensure that you receive your money in a manner that was specified when you were purchasing the insurance policy.

Q. What are the documents that my nominees must furnish in case I die during the policy term?

ANS: In case of your unfortunate and untimely demise during the policy term, your nominees will have to furnish such basic documents as the policy bond, the claim form, and the death certificate of the late policyholder. There may be instances wherein the insurance company may also request you to furnish other documents like a post mortem report, a police inquest report, an employer’s certificate, a hospital certificate, a medical attendant’s certificate, etc. The policy bond usually contains all the information associated with the claims process.

Q. How will I figure out if the agent who is selling the life insurance policy to me is authorised or not?

ANS:Insurance agents are usually representatives of specific life insurance companies and have the authority to offer advice on any product that is sold by that particular insurance company. All agents who deal with the sale of life insurance policies are registered with the IRDA. All agents also have a basic requirement to pass an examination before undertaking to sell insurance policies. In case you are purchasing an insurance policy through your agent, make sure that you request for his / her authorisation card attained from IRDA.

Q. What are the major differences between a non-participating policy and a participating one?

ANS:A non-participating insurance policy is one that does not allow the insured individual to share in the profits made by the company, while a participating policy ensures that an insured individual has the right to share in the profits of the company. However, the dividends or bonuses declared by the insurance company may increase or decline based on the life funds’ investments returns.

Q. How are individual risks ascertained by insurance company before they sell you a policy?

ANS: The mortality or risk class of an applicant will be calculated based on an underwriting procedure through which the insurance provider can determine whether or not the applicant is a risk worth taking. The risk of death is calculated based on many different factors like the age of the applicant, the sex, medical and personal history, occupation, habits, etc. The decision of the life insurance company to insure the life of an applicant will depend on the details you have mentioned in the application form. Make sure that all the information you enter therein is accurate as inaccurate information has the potential to cause problems at the time of making claims.

Q. What does the company do in case I do not make premium payments on time?

ANS:Insurance companies provide something called a grace period to customers who are unable to make premium payments on the due date. The period usually spans for 15 to 30 days, and customers who default on their premium payments are expected to pay during this period. Failure to do so will mean that your life insurance policy has lapsed. As a result, you can either reinstate or revive the policy within a predetermined period of time.

Q. What happens if my policy is cancelled during the free-look period?

ANS:Cancellation of policies during the free-look period can be done free of cost. However, in case you wish to cancel your life insurance policy after the free-look period, you will be charged a small fee for the same.

Q. What is the payout granted to an individual who surrenders his / her life insurance policy?

ANS: When a life insurance plan has been active for a specified number of years (usually at least five), the policy acquires a cash value. Every life insurance policy has a savings portion called the cash value. The cash value of a life insurance policy adds up when the worth of premium payments made by the policyholder exceeds the cost of insurance. This excess amount is transferred to a cash value account where it accrues interest. In case you choose to surrender the policy, the company will offer you the cash value or surrender value of the policy. However, please note that surrendering an insurance policy prior to the end of the maturity period will make you incur a significant loss.

Q. How much does life insurance cost?

ANS: The cost of a life insurance policy will be determined by the premium payments you have undertaken to make to the insurance company. The number of premiums and the cost of each premium, in turn, will be determined by your age at the time of purchasing the policy, the kind of life insurance policy you purchase, the sum assured, and the policy term. Premium payments are payable on an annual / semi-annual / monthly basis.

Q. What benefits does a life insurance policy provide?

ANS:A life insurance policy essentially ensures that your family is financially secure in case of your unfortunate and untimely death. That apart, life insurance policies also offer tax benefits. The premium payments you make towards your life insurance policy can be deducted under Section 80C of the Income Tax Act. However, the total amount of money deducted under Section 80C cannot be more than Rs.1.5 lacs. Moreover, life insurance policies can also be used as a financial planning tool as most insurance policies in the market today come with built-in savings element that enable you to ensure that both savings as well as life cover can be possible. Life insurance companies also cover hospitalisation costs, making them beneficial instruments that ensure that you have access to quality healthcare. In addition, the riders that can be purchased along with a life insurance policy will significantly reduce expenses. For instance, if you purchase a Critical Illness rider, you will receive a lump sum in case you are diagnosed with conditions such as cancer, heart attack, coronary bypass, kidney failure, stroke, paralysis, Alzheimer’s disease, vital organ transplants, etc.

Q. Can I find a policy that will pay me money while the policy term is still in progress?

ANS:Money Back policies are the best bet in case you want a policy that will pay out during the course of the policy term.

Q. How often will I have to make premium payments?

ANS:Premium payments can be paid based on the discretion of the policyholder, but the options available to you will be monthly, quarterly, semi-annual and annual.

Q. Is it better to buy life insurance policies at a young age?

ANS: Yes, purchasing a life insurance policy at a relatively young age, such as in your twenties, can help you avail the plan for significantly low premium.

Q. Is it better to purchase a life insurance policy from an agent or should I only purchase one from an insurance company?

ANS: While life insurance companies are the most reliable sources when it comes to purchasing life insurance policies, insurance agents are not totally untrustworthy either. However, before you purchase a life insurance policy from an insurance agent, it is advised that you request for their authorisation card from the IRDA to ensure that they are certified sellers.

Q. When does life insurance cover begin?

ANS: Your life insurance cover will start on the date of commencement after the insurer has received and approved of your insurance application. It is also known as Risk Commencement date.

Q. Are life insurance premiums fixed?

ANS:The premiums of life insurance policies usually do not change and remain fixed for the term of the policy which is decided by the policyholder. Some policies have single pay or limited pay options also where the premiums can be paid in one lump sum or over a period of a few years.

Q. Can older people buy life insurance?

ANS: Yes, older citizens who are above the age of 60 can also purchase life insurance policies. There are various types of insurance policies like term life policies, whole life policies and guaranteed life insurance policies which are designed to provide cover to older individuals. LIC and Reliance offer life insurance plans specially designed for senior citizens.

Q. Can I get life insurance for my parents?

ANS: Yes, you can get your parents insured under a life insurance policy. Depending on their age and health, you can choose from a range of life insurance policies which are specifically designed for older individuals or senior citizens, as the case may be.

Q. Are life insurance pay outs taxable?

ANS: As per the provision of Section 10 (10D) of the Income Tax Act, 1961, any sum assured amount received under the policy, along with any bonus that is paid by the policy at the time of its maturity or on the survival of the life assured, is tax free. However, there are certain conditions following which the policy proceeds may be taxed.

Q. How much life insurance cover does a person need?

ANS: When it comes to life insurance, one person’s requirements will differ from another’s. The amount of life insurance cover that one requires depends on various factors such as their income, their liabilities, and their expenses. After calculating all of these, you can determine how much life insurance cover would be adequate for you.

Q. Is it better to take a single cover policy or a joint life insurance policy?

ANS:In case of single cover policies, both individuals are covered under separate and independent policies which have no effect on each other. However, under a joint policy, both individuals are covered under one policy. In case of a mishap where both individuals lose their life, their beneficiary will receive only a single pay out, while in the case of two single policies, there will be two pay outs, one from each policy.

Q. Do life insurance premiums increase with age?

ANS: Premiums for various kinds of life insurance policies like whole life policies remain fixed for life, as they do for term insurance policies. However, for term insurance policies, if you wish to renew the policy after the end of the policy term, the premiums may significantly increase in order to cover the risk of a higher age.

Q. Who is the claimant in a life insurance policy?

ANS: he person who files a claim on a life insurance policy is known as the claimant. In case of the life insured suffering injuries not amounting to death, the life insured will become the claimant.

Q.What is modified death benefit?

ANS: YA policy which features a modified death benefit usually has a waiting period before it pays out the full death benefit to the beneficiary.

Q. What is a graded premium life insurance policy?

ANS: Graded life insurance is one of the lesser known types of insurance. This whole life policy features initial premium which are lower than other similar policies. However, the premium increases every year for a fixed number of years, after which it stays fixed till the policyholder owns the policy. This type of life insurance is suitable for those individuals wish to get covered but may not be able to afford the premiums of a life insurance policy. With a graded policy, they can take advantage of the lower initial premiums which eventually stabilize after a few years. Graded premium policies are also known as graduated premium life insurance policies.

Q. When does life insurance cover begin?

ANS: our life insurance cover will start on the date of commencement after the insurer has received and approved of your insurance application. It is also known as Risk Commencement date.

Q. Are life insurance premiums fixed?

ANS: The premiums of life insurance policies usually do not change and remain fixed for the term of the policy which is decided by the policyholder. Some policies have single pay or limited pay options also where the premiums can be paid in one lump sum or over a period of a few years.

Q. What does a typical life insurance policy offer?

ANS: Life insurance is essentially a way in which an individual can secure his/her family’s future in his/her absence. A life insurance policy’s worth is efficiently comprehended once the breadwinner of the family passes away or his/her income ceases to come in altogether. The payout amount released by the insurance provider is thereafter utilised by the family to clear any debts, or pay off loans, or pay the mortgage amount, and so on.

Q. Who should purchase a life insurance policy?

ANS: If you have a dependent or dependents who rely on you financially, then purchasing a comprehensive life insurance policy is a must. The sum assured amount of the life insurance policy will financially assist your dependents at a time when they need it the most.

Q. What is the meaning of whole life insurance?

ANS: As the name suggests, a whole life insurance policy essentially provides coverage for an individual’s lifespan. In case the insured passes away before end of the policy term, the corpus built is handed out to the nominee/beneficiary as mutually agreed upon by the insured and the insurer.

Q.Why Should One Purchase a Whole Life Policy?

ANS:Whole life insurance policies may be purchased for the following reasons:

Whole life plans offer protection for the entire lifetime of the policyholder

Their premiums are fixed

A whole life policy is fundamentally a family protection plan

Whole life policies provide tax benefits as well

Q. What is the meaning of a money back plan?

ANS:Money back plans essentially combine the elements of insurance and investment to provide policyholders with a policy that is comprehensive in nature. Over the policy term, these plans offer a certain amount of money (periodic returns) at regular intervals as survival benefit. The regular payouts are paid as per the interval decided by the insured, and upon successful survival of the policy term, the insured gets the remainder of the maturity benefit.

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Top 10 Factors Affecting Life Insurance Premium Costs

Life insurance is a smart way to not only provide protection to your loved ones but also as a means of investment. For a low premium, you can get a modest amount of coverage and also a chance to invest and get returns in the future. However, when it comes to life insurance premiums, it is important to know, that premiums for life insurance policies vary for different individuals depending on a number of factors.

If applicant A is being charged an X amount of premium, it is not necessary that applicant Y will also be charged the same premium. While some of these factors are in your hands to control, some are not. If you are looking to take a life insurance policy, it would be greatly helpful to know what can and what cannot affect your premium. Read on to find out some of the most crucial factors affecting your life insurance premiums.

The most important aspect of any insurance policy is claim settlement. After all, the objective of taking an insurance policy is to ensure that your dependents remain financially secure in case you are not around to provide for them. When it comes to insurance, an insurer’s claim settlement ratio is one of the most important indicator of the insurer’s intention regarding claims. Customers will undoubtedly prefer an insurer who has a proven record of processing claim settlements in the shortest amount of time. However, many policyholders remain in the dark about the claim settlement process of an insurer until the time when they actually have to file for a claim. This can often cause hassles and stress as without much knowledge about the process, it can take longer than needed to register a claim and get it approved as well. Did you know that there are multiple steps involved in filing a claim, or there are different documents that are required for death related claims and maturity related claims? Read on to know all about the claim filing process under life insurance.

The concept of life insurance is not a new one. People have been making use of life insurance for over 4 centuries to protect not only themselves but also their loved ones from the possibility for an unfortunate event. Though life insurance seems to have been around for a fairly long time now, there are many people who are not quite aware of all the aspects involved in a life insurance policy. When it comes to purchasing life insurance, there are many people who take the assistance of life insurance agents for purchasing a policy, while several others who prefer doing their own research and purchasing a policy directly themselves.

For someone who isn’t quite familiar with the workings of it, life insurance can be confusing to understand. Who are the parties involved in a life insurance policy? What is the eligibility age acceptable to apply for an insurance policy? How many types of life insurance policies are there? What factors affect the premiums of a life insurance policy? When is it best to purchase a life insurance policy? Is it wise to get life insurance as a tax saving instrument? These are just some of the many questions which will find answers to in this article.

SBI Life Insurance is one of the pioneers in India’s life insurance segment. The insurer offers a variety of life insurance plans, some of which cater to individual (ULIPs, protection plans, retirement plans, child plans) and some to corporate group needs (group micro insurance plans, group loan protection plans). Offering the ease of online purchase, SBI Life insurance plans offer a range of other benefits like online payment of premiums, hassle-free claim process, high claim settlement ratio, and minimal paperwork required for application. Some of the popular life insurance plans offered by SBI Life insurance include SBI Life eShield, SBI Life – Smart Money Planner, SBI Life – Smart Humsafar, SBI Life – Smart Power, SBI Life – CSC Saral Sanchay, and more. If you are looking to purchase an SBI life insurance policy, read on to find out about the best policies which SBI has to offer, right here.

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After LIC tie-up, IDBI Bank collects Rs.160 crore insurance premium

IDBI Bank managed to collect Rs.160 crore as insurance premium in March 2019. This is after the company struck a partnership with Life Insurance Corporation of India. IDBI Bank has announced that the corporate agents of LIC can sell products across all the 1,800 branches of the bank spread across the country. Life Insurance Corporation of India is the major shareholder and owns 51 percent of IDBI Bank when it comes to its banking entity. The deal between the two parties was completed in the month of January 2019. IDBI Bank sole 26,116 policies in March 2019. The bank said that the diverse product portfolio of LIC will help the bank to target all of their customers with a high net-worth who are living in the urban and metro areas. The company is also looking to focus semi-rural and semi urban areas. In a statement released by the Life Insurance Corporation of India has sold policies worth Rs.30.2 crore. IDBI Bank has also launched retail loan products that will be made available specifically for the LIC customers. These products will be providing discounts in the personal loan, auto loan, home loans, and education loan.

23 May 2019

Managing Partner programme implemented by Edelweiss Tokio to help new entrepreneurs

Edelweiss Tokio has designed an all new model called the Managing Partner programme. This program has been designed keeping in mind the vision of the government to make India one of the biggest entrepreneurial hub. The main purpose of this plan is to support all the dream of the Development Managers (DMs). Development Managers are a vital part of an insurance agency. This workforce is responsible for managing and hiring Personal Finance Advisors. These people are commonly called agents. The company is hopeful that this plan will give the much-needed push to all the entrepreneurs out there and help progress their careers forward. Capital and infrastructure are two of the main challenges one will have to face at the time of setting an enterprise. The Managing Partner programme has gotten rid of all the limitations one will face and has ensured that it will provide the support needed for the development managers. Apart from this programme, the company is planning to hire 40 new Development Managers in Telengana and Andhra Pradesh in order to improve the reach of the agency in that region. The company is planning to hire 700 more Development Managers across the 121 spread across the country.

22 May 2019

Recruitment for Apprentice Development Officer posts at LIC has started

The Life Corporation of India (LIC) had issued a notification on 20 May 2019 for LIC Apprentice Development Officer (ADO) Recruitment 2019. The notification has been issued for all Eight Zones. The online application process has begun for the posts as well. According to the notification, LIC is accepting applications for the 8581 ADO posts that are available under the Western Zonal Offices, West Bengal.

According to the notification that has been issued, the online process to submit the application will be available from 20 May 2019 until 9 June 2019. Individuals must have completed at least a Bachelor’s Degree from an accredited university in India in order to apply for the posts. The candidate must be within the ages of 21 years and 30 years, respectively, and preference will be given to candidates with at least 2 years of experience in the life insurance industry. The procedure to hire candidates will be via a two-phase examination followed by an interview. The tentative dates for the preliminary examination are from 6 July 2019 to 13 July 2019 and for the main examination is from 10 August 2019.

21 May 2019

Reliance Capital’s 43% Acquired by Nippon Life

Nippon Life Insurance, one of the popular and reputable life insurance providers operating in India, recently acquired an added 43% interest of its partner Reliance Capital, according to media sources. As a result of the news, the shares of Reliance Nippon Life Asset Management and Reliance Capital grew by 4%. Reliance Nippon Life Insurance Company has a wide range of products for its customers – ranging from life and investment products to pension plans and child plans. Customers looking for comprehensive life insurance solutions must turn to Nippon Life Insurance in order to receive the best financial product and services.

17 May 2019

CHOICE To Enter the Top-Five Ranking in the Insurance League

Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd (CHOICE) has had a good run during the financial year 2018-19. Owing to their splendid performance, CHOICE has now aimed to enter the top-five rankings in the insurance league in the coming years. This news has been given by one of the CHOICE officials. The Chairman of CHOICE made a remark saying that currently the company’s rank is 10 in almost all the parameters. The life insurance company now aims to enter the top-five bracket in the coming years. The life insurance company, CHOICE, has successfully completed 10 years in the insurance sector and within this timeframe, it has accomplished a cumulative break-even, has been able to completely wipe off its collected losses, and has reported a total profit of Rs.165 crore during the course of the financial year 2018-19. It has further been reported that the company does not plan on going public anytime soon. Moreover, CHOICE is currently not looking at raising capital for the coming three years, given that they are well-placed on the capital front.

16 May 2019

Tie Up Between HDFC Life Insurance and Airtel to Provide Life Insurance

HDFC Life Insurance and Airtel have come together in a collaboration in order to offer a monthly life insurance cover to Airtel’s most eligible subscribers. In this collaboration, Airtel will serve as the facilitator while HDFC life insurance will be offering the coverage to applicants. You will be able to leverage the benefits of this cover only if you are prepaid Airtel subscriber. So, this in turn means that postpaid subscribers of Airtel will not be eligible for this coverage. The minimum entry age for the cover is 18 years and the maximum entry age is 54 years. The applicants for the insurance policy will also give a declaration of their good health before applying for the coverage. The offer entails an extension of term insurance to the policyholders along with a total sum assured amount of Rs.4 lakh. The policy will yield no maturity benefit upon the completion of the tenure. Moreover, in order to avail the coverage, the Airtel customer will have to recharge their phone as per the mentioned rules and cannot recharge with any of the available STV plans.

15 May 2019

Importance of Customised Life Insurance Policies

The life insurance market of the 21st century is not unidimensional and demands involvement of the aspirational audience. Penetration of life insurance in India remains at an all-time low and people continue to remain unaware about the importance of being insured. The growth in the number of sold policies is staggering as per data released by the Insurance Regulatory and Development Authority of India (IRDAI). With respect to this, the life insurance industry has narrowly escaped a negative scenario. The insurance companies and providers in India have misconstructed the ways in which information can be divulged to the millennials of the 21st century. They should focus more on selling products to the youth online, through the advancement of technology. This is a sure shot way of gaining more and more customers that would purchase life insurance policies. Since the mutual benefit connection is nonexistent between the seller and the potential buyer, the gap remains big and blatant. The recently adopted trend, however, focuses on getting the point of view of these customers, in a way so as to understand their financial and personal needs. A suitable insurance policy is then customised according to the stated needs of the applicant.

14 May 2019

Importance of Effective Management of Life Insurance Policies

Simply purchasing a life insurance policy does not mean your responsibilities have ended. It in fact means that it is time to enhance your base life cover with various elements that will in turn fetch you better returns. There are multiple insurance purchasers in the market who forget about their policies once the purchase is done. This approach is not recommended as a life insurance policy has much more to offer than just the death and maturity benefits. There are multiple key opportunities that a comprehensive life cover can offer. Some of them have been mentioned below:

Life insurance riders are an intrinsic element of life insurance. Riders basically help enhance your base cover and they provide you with multiple benefits upon payment of an additional premium. Some of the common riders available along with life insurance policies are critical illness rider, family income benefit rider, waiver of premium rider, and so on.

Depending on the kind of policy you have purchased and its surrender value, you can avail a loan against your life insurance policy for a nominal loan processing fee.

Life insurance policies can be tailor made and can be customized to suit your needs at various life stages.

9 May 2019

Determining the Type of Life Insurance Most Suitable to a Family

If you are considering purchasing a life insurance policy for yourself and your family members, you first have to determine the kind of life insurance policy most suitable for you and your loved ones. A term insurance policy, as the name itself suggests, remains valid for a specific period of time only. The term usually ranges from 10 years and 15 years to 25 years and even 30 years. The term period will be your choice after you consider all the options and your needs and requirements. A permanent life insurance policy basically has no end date and hence lasts for the entire lifetime of the policyholder. The premiums of a term plan will be substantially lower than that of a permanent life insurance policy. This is because the coverage of a term plan expires eventually. This is the reason why most people in India prefer opting for a term plan as compared to a whole life insurance policy. However, if an individual wants lifetime coverage along with the element of savings, he/she can always opt for a whole life plan. However, the premiums will be relatively higher as compared to a term plan.

8 May 2019

Chennai Declared the Most Insured Indian City

A recent survey has declared Chennai to be the most insured Indian city, with nearly 86% of its population owning a life insurance policy. India Protection Quotient survey had recently conducted a survey wherein they took into account the penetration of life insurance in Indian cities. Chennai has come out at the top in this survey. The survey, basically, aimed to determine the policyholders’ level of preparedness in the face of medical emergencies, by understanding their term and life insurance awareness. The survey also analysed the primary and ownership fears of policyholders, their triggers, and preferences at the time of purchase of a policy. The Protection Quotient of India as a country currently stands at 35, whereas the PQ of South India stands at a higher number of 38. Amongst the South Indian cities, Chennai tops with a Protection Quotient of 42. Other competing cities in the list are Ahmedabad, Bengaluru, Mumbai, Lucknow, Vishakhapatnam, Kolkata, and so on. On top of that, a knowledge index score of 47 further shows that the citizens of Chennai are more aware about the concept of insurance. The survey goes on to state against the 65% national average of life insurance in India as a whole, South India owns more term and life insurance ownership as compared to other regions.

7 May 2019

Determining How Much Life Insurance Cover You Need

Life insurance is one of the most important financial purchases one must make in his/her life. It is through life insurance itself, that you are able to protect your family members while building a corpus for your retired life. If you are uninsured or underinsured, your sudden absence can create a major financial impact on your family members. Therefore, it is important that you guarantee their financial security during all stages of life. Today’s market is flooded with a horde of life insurance products. These are term insurance policies, Unit-Linked Insurance Plans (ULIPs), Endowment Plans, and so on. However, there are multiple aspects that you need to keep in mind while purchasing a life insurance policy. These are:

The amount of cover you need is directly dependent on the number of financial dependents you have. Moreover, your financial responsibilities shift with time. Therefore, make sure you invest in an adequate cover, after considering factors like inflation.

The kind of plan you need also varies from one life stage to another. For example, if you are in your 30s, it makes more sense to purchase a term insurance policy. Similarly, if you are in your 40s, investing in a pension/retirement plan is wiser as your life after retirement will be protected.

3 May 2019

Importance Should be Given to Life Insurance Covers and Annuity Plans

A vision objectively stands for a particular company’s mission or objective in the longer run. A particular vision is inclusive of an entire society or community that is further expected to make a transformation shift to a certain level of product and experience. Currently, the insurance penetration in India is at an all-time low. For the most part, this is primarily because people continue to lack awareness about the very importance of being insured. This means that a lot of this responsibility falls on the shoulders of the private and public life insurance providers of the country. They should be ones who must propagate the importance of purchasing life insurance covers. All the private and state-owned life insurance providers of the country have made their mission statement to be the most reliable and trustworthy life insurance providers of the country. Additionally, the reason why maximum Indians continue to be under-insured is because of low density in the country. These days companies and life insurance organizations have become more prudent towards providing comprehensive life covers to the Indians. However, more efforts should be made in this direction.

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Customer Reviews

I have taken a life insurance in LIC before 2 years ago. The policy is for 16 years. Now I am paying premium in the half yearly package for the amount of 18 thousands. While getting a policy my agent has given an information about the policy details. Use to provide cash to the agent for the payments.

I have taken a life insurance in LIC before one and a half year before. The policy is for 10 years. Now I am paying premium in the yearly package for the amount 10 thousands. While getting a policy agent has given an information about the policy details and provided hard copy documents as well. I use to do payments through an online.

I have taken a life insurance in LIFE INSURANCE CORPORATION OF INDIA. Its is a Jeevan new genersha plan policy. While getting a policy my agent has given an information about the policy details and provided hard copy documents. The customer service is good.

I have taken a life insurance in LIFE INSURANCE CORPORATION OF INDIA. Its is a Jeevan anantha plan policy. The policy is for 16 years. Now I am paying premium in the yearly package for the amount of 7680 rupees. While getting a policy my agent has given an information about the policy details.

5 years back, i have purchased the life insurance policy from Life Insurance Corporation of India. I am paying the premium amount of Rs. 3500. My friend has recommended me about the policy. I need to pay the premium for 15 years. I am paying the premium through ECS.

The dealer has provided me the policy when i purchased my bike. They have not given any clarity about the policy. I can make the premium through EMI as well. I need to pay Rs. 700 every month. The coverage value is Rs. 25 lakhs. The amount has been deducted through auto debit option. Still i have not received the hard copy of the documents.

I have invested in money back in HDFC. They are very perfect in all the things hence i have chosen the HDFC life. 6 months back, i got this policy. I pay this premium amount of Rs. 10000 every year. Total tenure period of the policy is 5 year with a coverage amount of Rs. 3 lakhs.

I have taken a life insurance in BHARTI AXA LIFE INSURANCE. Now I am paying premium in the yearly package for the amount of 10 thousands. While getting a policy my agent has given an information about the policy details. I use to do payment through an online. The coverage up to myself.

I have taken a life insurance in HDFC LIFE. The policy is for 50 years. Now I am paying premium in the yearly package for the amount of 15 thousands. While getting a policy my agent has given an information about the policy details. I use to do payment through an online.

I have taken Life Insurance policy through LIC agent .The agent gave all the required details about the policy .I have got the policy documents on time .This is a Maturith benefit policy and it is for the tenure of 20years and paying premium on Half yearly basis .I have submitted documents also .I have got the policy documents on time.The policy is still active,policy coverage ,plan benefits and payment option everything was good .

I have taken Life Insurance policy through LIC agent .The agent gave all the required details about the policy .I have got the policy documents on time .This is a Maturith benefit policy and it is for the tenure of 20years and paying premium on quarterly basis .I have submitted documents also .I have got the policy documents on time.The policy is still active,policy coverage ,plan benefits and payment option everything was good .

I have taken Life Insurance policy through LIC agent .The agent gave all the required details about the policy .I have got the policy documents on time .This is a Money Back policy and it is for the tenure of 20years and paying premium on quarterly basis .I have submitted documents also .I have got the policy documents on time.The policy is still active.